Which of the following statements best describes the substantial presence test as it applies to determining if a non-U.S. citizen is a resident alien for U.S. tax purposes?
A)To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year.
B)To be treated as a resident alien, an individual must be physically present in the United States for 183 days in the current year and each of the prior two years.
C)To be treated as a resident alien, an individual must be physically present in the United States forthe equivalent of 183 days,calculated using a formula that includes the current year and the prior two years.
D)To be treated as a resident alien, an individual must be physically present in the United States forthe equivalent of 183 days,calculated using a formula that includes the current year and the prior year.

Question

Quizplus · Accepted Answer

The substantial presence test looks at an individual's physical presence in the United States over a three-year period. To be considered a resident alien, an individual must be present in the U.S. for at least 31 days in the current year and a total of 183 days when a formula is applied that includes all of the days present in the current year, one-third of the days present in the prior year, and one-sixth of the days present in the second prior year. Therefore, the correct statement is that an individual must be physically present in the United States for the equivalent of 183 days, calculated using a formula that includes the current year and the prior two years.

Which of the Following Statements Best Describes the Substantial Presence